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Affiliate marketing is one of the stalwarts in the digital marketing landscape. It seems to benefit from change as much as it benefits from a lack of change.
For example, over the years CPM prices in non-premium inventory have dropped and yet CPA rates and network overrides have remained largely unchanged.
That has allowed some savvy arbitrage players, like lead brokers or performance agencies, to make a whack of cash. It has also contributed towards the rise of the reverse affiliate.
Previously I investigated the change in affiliate promotional type across the network. This post examines how this varies across three sectors and highlights the reasons behind this.
What do advertisers want to see from their affiliate programmes?
Generally speaking, they ask two things: firstly, that the largest possible proportion of their affiliate base is active in driving sales revenue; secondly, that there be a constant feed of good quality new affiliates coming onto the programme to actively promote them.
For some advertisers, merely being listed on cashback sites is enough for them. For the savvier retailer, planning a strategy around cashback sites involves setting additional targets to sit alongside the sales’ volumes they hope they’ll achieve.
Yesterday at the IAB's affiliate marketing council, chair Kevin Edwards presented an unbelievable quote taken from The Economist, a weekly newspaper with a focus on politics, policy and an authority on global business news. Let's have a look at it...
This is simply a poorly researched and mal-educated quote from a respected print magazine which, unfortunately, is read by senior management within many organisations.
New customer acquisition is a key metric for many merchants and the affiliate channel has demonstrated its ability to drive new customers at low costs.
With more online retailers interrogating the data that is available to them, affiliate networks are able to highlight the volume of new customers they are capable of delivering through their affiliate partners.
Anyone working in affiliate marketing will tell you it’s a complex channel. Typically the day to day grind of an affiliate network is to try and make sense of this complexity, juggling priorities and conflicting interests, resolutely performing the role of middleman and arbiter.
Yet as the industry matures and grows in both value and influence, is the role of the affiliate network changing?
While the general discussions about behavioural retargeting have concentrated on the thorny subject of privacy, for affiliate marketers the debate has a different focus, challenging some fundamental and long held practices.
Affiliate marketing is thriving, with the sector expected to drive an estimated £4.62 billion in online retail sales during 2010 in the UK alone, according to Econsultancy's annual buyer's guide published last week.
It is important for publishers, merchants, networks and agencies alike to continue to innovate to add value to the customer journey and drive further growth in the sector. This post explores some of the latest trends in the industry covered in the report.
Whether you're an affiliate (aka publisher) or a merchant (aka advertiser), understanding how other affiliates prioritize various factors related to affiliate programs is important. In this post I'll share findings of a poll I ran for three months on my blog.
Matt Bailey wrote earlier this month on the problem that affiliate marketing seems to have in shaking off negative connotations.
His points are entirely valid; affiliate marketers continuously have difficulties in effectively communicating the strengths of our channel.
For those working in affiliate marketing it genuinely feels after a handful of false dawns that our £4bn industry is at a crossroads, poised to develop genuinely more intelligent and intuitive commission modelling.
Affiliate marketing is at the coalface of online, premised on converting traffic to valid leads or confirmed sales. The past 15 years have seen a significant portion of online disciplines worked to cost per acquisition, falling within the remit of performance based marketing and rewarded on the same ‘last click wins’ discipline.
But as de-duplication becomes commonplace and analytics’ packages provide a wealth of data so the clamour for a ‘fairer’ reward system has gained momentum.